Yangaroo shares tumble 8% Tuesday.
Digital media distribution firm Yangaroo (TSX:V.YOO, Stock Forum) saw its shares fall 8.7% to 10.5 cents Tuesday after the company reported that its patent application has been allowed.
The company says the patent in the U.S. for "Content Distribution System and Method" covers a method of distributing digital content, such as music and advertising, to selected individuals over the Internet, in which the uploading content provider selects the individuals that are entitled to access the content and sets release conditions. The formal Letters Patent grant is expected to follow shortly, notes Yangaroo.
Yangaroo says its Digital Media Distribution System “is the only such system available to the North American record, radio and advertising industries today that has U.S. and Canadian patent protection for all of these crucial features.”
The company was granted a Canadian patent of the same title in 2005.
On the Yangaroo Bullboard, IKNOWUDONT gave some thoughts on the news and another technology firm, saying: “This is the same patent that has prevented Destiny from operating in Canadasince 2004. YOO tells me DSNY has offered their service for free to all major andindependent labels in Canada and no one has used them. No label or broadcaster wouldinfringe on YANGAROO’s intellectual property rights. Now it's the US's turn. The US market in this space is 17x the Cdn market. Almost all of YOO rev is Canadian. Not to hard to figure out the math. Also, one can ask, how does the allowance of the YOO US process patent affect the Canadian patent infringement litigation?[sic]”
